The price of Ripple (XRP) is putting in an impressive run, but is running into rejection twice at the $0.60 level. On July 20, the bears had pushed the cryptocurrency to the previous low at $0.51, but the bulls bought the dips.
This is driving the cryptocurrency to bounce above the current support. However, the current bullish momentum has reached bullish exhaustion as the market reached the overbought region.
Buyers have struggled to break out above the recent high. XRP may face rejection as the market has reached the overbought region. If XRP meets rejection at the high of $0.60, XRP/USD will resume a downtrend. Bears will try to pull the price below the $0.51 support. If the previous low is broken, XRP will continue to fall to either $0.45 or $0.30. In the meantime, XRP is facing rejection at the recent high.
Ripple is below the 80% area on daily stochastics. The altcoin has reached the overbought zone as sellers are emerging. Bears are selling on recent rallies as XRP heads back down. XRP is at level 43 on the Relative Strength Index for period 14, indicating that the market is in the bearish trend zone and capable of falling lower. The 21-day and the 50-day SMAs are sloping downward, indicating the downtrend.
Major Resistance Levels - $1.95 and $2.0
Major Support Levels - $0.80 and $0.60
Ripple (XRP) used to be in an uptrend, but faces rejection at the high of $0.60. Meanwhile, on July 21 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Ripple is likely to rise but will reverse at the 1,272 Fibonacci extension level or $0.60 level. The altcoin will reverse and return to the 78.6% Fibonacci retracement level where it originated. From the price action, XRP falls to test the 78.6% Fibonacci retracement level.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing.